February 26, 2020 – Yahoo Finance – Carter’s, Inc. (NYSE:CRI) could deliver an improving stock price performance, in my opinion, after its 2% decline in the past year.
The children’s apparel designer and retailer is investing in its website, expanding internationally and seeking to reduce costs.
The company launched an enhanced loyalty program in fiscal 2019. It provides Carter’s customers with features such as advanced notice of special offers, free shipping on all orders and instant credit on their purchases. Since its launch, over 4,000 of the retailer’s customers have enrolled in its loyalty program. Around one in five of them were new customers for the business, which suggests that its loyalty program is expanding its appeal to a broader range of consumers.
Sales made by the company through its enhanced loyalty program are more profitable than its other sales. As the program’s number of members grows, it could have a positive impact on the retailer’s bottom line.
Carter’s has invested in improving its website to encourage its customers to purchase products online. For example, in fiscal 2019 it improved the search functionality of its website and made the checkout process simpler for customers. This contributed to a six percentage point increase in the proportion of its total sales that were derived from its website in the fiscal 2019 fourth quarter. They now account for 36% of its total sales.
In addition, the retailer changed its e-commerce process so that its stores can now fulfil orders instead of the business being solely reliant on its distribution centers. This could make the company more efficient, and may mean that it requires less inventory in upcoming years. It has also increased the speed at which the company’s online orders are fulfilled, which could improve satisfaction levels.
Read more at Yahoo Finance.